Andy Burnham Pushes Land-Value Tax, Allies Warn of Long Implementation Timeline

Mayor Andy Burnham has renewed his call for a land-value tax (LVT) that would substitute both council tax and stamp duty. The proposal, championed by the Fairer Share campaign, envisions an annual charge based on market-valued land rather than the buildings on it.

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Council tax is an annual levy used to fund local services, but the Institute for Fiscal Studies (IFS) has labelled it “highly regressive” and outdated. Proponents of LVT contend that taxing land alone would encourage productive use of sites, reward development, and address the current mismatch where larger homes in affluent areas can pay less council tax than smaller homes in poorer neighborhoods.

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Burnham reiterated his long-standing support for LVT, noting that he first advocated the idea during the 2010 Labour leadership contest and that he remains committed to reforming “highly regressive” council tax. In a recent interview, Burnham said tax decisions would be taken at the upcoming Budget. Conservative leader Kemi Badenoch has pledged to abolish stamp duty altogether.

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He suggested the reform be framed as a ten-year project rather than an immediate overhaul. Metro Mayor Steve Rotheram echoed these cautions, comparing the potential impact to the poll tax and stressing the need to avoid “more losers than winners.” Rotheram also flagged the risk that a wealth-tax element could be perceived as punitive toward successful individuals.

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• Council tax valuations date from 1991, contributing to regressivity.

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• Stamp duty applies to purchases above £125,000; first-time buyers benefit from a £300,000 threshold.

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• The IFS characterises stamp duty as economically damaging and council tax as outdated.

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The proposal remains a long-term ambition, with senior allies emphasizing realistic timelines and the political sensitivities of overhauling two entrenched taxes.

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